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5.1 Making Innovation Happen - Coggle Diagram
5.1
Making Innovation Happen
"Innovate or die!"
Bernie Meyerson
It’s vitally important for organisations to manage, develop and deliver innovation systematically “by design”, rather than by accident.
the Innovation Ambition Matrix describes how organisations can drive innovation at multiple levels:
Adjacent
building upon something the company already does well and using it to create “new to the company” business – either developing new products and services linked or aligned to the existing portfolio for existing customers, or taking existing products and services to new customers and markets.
Transformational
developing breakthroughs and new inventions, including inventing things for markets which didn’t even exist previously.
Core
optimising and improving existing products, services and processes for existing customers and markets.
Nagji & Tuff (2012:17), Nagji and Tuff suggest: the 70-20-10 rule
20% Adjacent
10% Transformational
70% core
Many organisations put in place key enabling capabilities and make use of appropriate organisational models
Innovation enablers
Process
focus on specific themes, challenges and opportunities which are important to the business at that specific time. This is often termed as a market
pull approach.
As you will see later during the unit, some companies also use their innovation management process to find new or existing problems for their new technologies to solve. When this is done, it’s called
technology push
.
simple three phase innovation management process such as the funnel digram 5.2
Some industries, particularly those developing complex technologies or are subject to strict regulation, make use of much more detailed and robust processes and models.
for example the TEchnology Readiness Level (TRL) model
Funding
Funding for the early stage development of emerging technologies is an issue for many organisations.
Sometimes, even when funds are available, the bureaucratic processes followed by large organisations can lead to excessive lead times to access the funding.
many leading organisations put in place one or more funding mechanisms to foster the early stages of innovation.
One example of an innovation funding mechanism is IBM’s internal ‘SPEED’ programme
People
leaders need to empower people to identify ideas and implement processes and systems to capture the best ideas.
Many organisations create specialist innovation units or teams. These can be closely linked to or separate from research teams
Often, innovation teams and managers will be embedded within a business unit. This is particularly the case when working on core and adjacent innovation
Culture
A positive innovation culture instils belief that the organisation considers innovation to be a priority and is able to make it happen.
Positive communications and rewards for successful innovations are key elements of an innovation culture
Leadership
Executives and other leaders need to make innovation a priority for their organisation.
Actions will include communicating this
internally
and
externally
.
ensure innovation is driven as a priority in the organisation.
Platforms
With so much focus on emerging technology, digital innovation and transformation, organisations need agile platforms and mechanisms to identify ideas, create prototypes and experiment with new and emerging technologies.
The focus of innovation platforms and mechanisms can include:
online systems to capture ideas
research labs
‘sandpit’ environments
pay-as-you-go cloud-computing-based platforms to enable fast development of prototypes and apps
other mechanisms for developing new ideas and technologies.
Organisational models for managing innovation
Organisations use a range of different approaches and organisational models for managing, developing and delivering innovation
The models used depend on the types and levels of innovation the organisation is attempting to achieve
Often, these models align with the levels of innovation described in the Innovation Ambition Matrix.
Organisational Models
Adjacent Innovation - Multiple Organisational Models
Adjacent innovation is about developing ‘new to the company’ business
This may include new products and services expanding the range out from the existing portfolio or taking the existing portfolio to new customer markets.
This could be achieved by existing units and specialist teams such as product development
Transformational Innovation - Separate Business Unit
A key part of the role will be to research and explore new and emerging technologies
Many organisations use separate business units to develop transformational innovation
Many such units collaborate extensively with customers, partners, suppliers, academia, specialist organisations and others, using the inside out and outside in approaches to open innovation.
Core Innovation
- Embedded into Existing Business Units
innovation teams and capabilities are frequently embedded into existing operational business units
This means the teams already responsible for delivering and supporting the organisation's current products, services and revenue.
Objectives include incrementally improving customer products and services and driving efficiencies to increase profit margins
example of this approach is Toyota’s development and adoption of the much-copied Toyota Production System.
Industry case studies
Toyota production system
One of the most renowned examples of an industrial organisation systematically embedding innovation into its core business is Japanese car maker, Toyota.
The Toyota Production System was created, based upon two key concepts:
‘Jidoka’ or ‘automation with a human touch’
‘Just-in-time’ – making only what is needed, when it is needed, at every stage of production.
X (formerly Google X)
X describes itself as ‘The Moonshot Factory’, with a ‘moonshot’ being described as the intersection of a big problem, a radical solution, and breakthrough technolog
IBM Research and IBM Watson